Water technology company VA Tech Wabag Ltd issued a clarification on Thursday (April 16) regarding reports published by CNBC-TV18 stating the company had emerged as the lowest bidder for a sewage treatment plant (STP) contract worth over ₹600 crore in Saudi Arabia. According to the company's statement, VA Tech Wabag stated it is not aware of any project worth over ₹600 crore in Saudi Arabia where it has been declared as the lowest bidder as of this date. The company has categorically denied this claim, emphasizing that no such project exists in Saudi Arabia where it has been declared the lowest bidder.
Regarding another report about the company being the lowest bidder for a project in Kuwait valued at around ₹3,400 crore in partnership with a US-based company, VA Tech Wabag provided specific details about the project status. As reported by the company, the customer had notified on its portal on August 6, 2025, that the joint venture of VA Tech Wabag and HEISCO, Kuwait, had submitted the lowest bid of KD 114,280,000 for a desalination plant in Kuwait. The company added that it is still awaiting the letter of award (LoA) for the Kuwait project as of this date, with the customer notification confirming the joint venture's lowest bid position.
VA Tech Wabag stated that since there is no event of "bagging of orders/contracts," no disclosures were required under SEBI Regulations, 2015. This clarification addresses the regulatory requirements for disclosure of material events that could impact investor decisions. The company emphasized that since there is no actual event of "Bagging of Orders/Contracts," no disclosures were required under Regulation 30 of the SEBI (LODR) Regulations, 2015, demonstrating its commitment to maintaining transparency and preventing misinformation from affecting investor decisions.
Despite the clarification, shares of VA Tech Wabag Ltd ended at ₹1,440.85, up by ₹67.45, or 4.91%, on the BSE on Thursday, April 16. The positive market response suggests investor confidence in the company's business prospects despite the clarification on the Saudi Arabia project report. The company's proactive disclosure demonstrates its commitment to maintaining transparency and preventing misinformation from affecting investor decisions, with the regulatory filing addressing discrepancies in news coverage and providing accurate information about its international project status.
